What are the Hidden Costs of a Construction Project?
Ever looked at a construction quote and wondered why some bids are so much higher than others?
The answer isn’t always obvious – yet these hidden costs make all the difference in your project’s success.
In this article, we are going to detail the most common “hidden” costs in construction projects. By the end of this article, you will be able to make a more informed evaluation of your next construction project quote, even if it’s from us!
Why Learn About Hidden Costs?
Your ability to understand the hidden costs when comparing bids allows you to make a more informed decision. We see this in our own work: when homeowners know what they are looking for, we are more quickly to discover if we are the right fit for their project. That’s why when it comes to hidden costs, we want you to know what you’re getting. While many contractors prefer to hide or “upsell” you on systems once you are under contract, we want you to see these costs upfront.
Let’s explore some of these hidden costs, including project management, materials, home systems, and site preparation. This article will help you choose which hidden costs you want to avoid and which you want to use to invest in your home.
Project Managers
Project managers (PMs) & and Superintendents (Supers) won’t show up as a line item in your project quote. However, when a contractor employs PMs and Supers for your project, it bolsters efficiency, and smooth experience, and reinforces attention to detail.
PMs and Supers responsibilities include:
Planning & Organization: Creating a detailed Scope of Work, ordering materials, and coordinating schedules.
Communication: Keeping homeowners informed throughout the process.
Quality Control: Ensuring materials are correct, inspections are passed, and work meets high standards.
One of the most consistent pieces of feedback we receive is about our project managers. When a PM is absent or disorganized, the lack of communication is one of the biggest reasons homeowners have a negative experience. When a Super is absent or disorganized, the poor attention to detail and poor efficiency can cause frustration.
We believe in employing PMs & Supers on every one of projects to ensure a quality process and peace of mind to our homeowners. However, we acknowledge that many contractors are able to offer lower quotes because they do not employ PMs or Supers for their projects. Many homeowners choose these quotes because other contractors are simply out of their budget. If that’s you, make sure to find a contractor who is able to ensure high attention to detail and communication with a reputation of high quality work. (Although, in our line of work, we have found that high quality contractors are often the ones who scale up quickly into employing PMs & Supers!).
Tip: How can you tell if a contractor employs PMs & Supers? Answer: Look at the reviews! You want to work with contractor whose reviews mention positive experiences with process, PMs, and Supers. Look for reviews that mention “attention to detail,” “trust,” and most importantly, “great communication.”
Hidden Materials
If a bid is significantly lower than others, ask: What materials are they using?
From framing to finishes, the materials used in a project impact the longevity and performance of your home. These materials are almost never seen but they can make a massive difference in the quality and longevity of your new home or remodel. Often, the materials that are used in construction are used because it is what the contractor is familiar with and what they have seen done for years. Unfortunately, just because it’s “always been done this way” doesn’t mean that it is the best way. These hidden materials can be found often in your bathroom’s waterproofing, floor joists, exterior sheathing, and subfloor.
Materials that Risk Higher Long-Term Costs:
Bathroom Waterproofing: Most bathrooms in the Piedmont Triad rely on the tile and grout to waterproof the shower and flooring. In reality, the grout most commonly used is cement based and allows water to soak through causing water damage to the framing of your home and introducing mold. By installing a waterproof system behind the tile we can prevent damage to the home and to the people inside it.
Framing & Subfloor: Standard practices for framing often leave you with a very leaky home allowing unfiltered air inside that is full of humidity and potential toxins in the outside air. Standard dimensional lumber can leave you with a bouncy and uneven floor, and the common subfloor can leave you with a squeaky floor keeping you from sneaking in that late night snack without being noticed. (If air is able to leak in, that also means it can leak out! Proper framing and subfloor protects the money you just spent heating or cooling your from just… leaving!).
Exterior Sheathing: The materials behind your siding impact insulation, air quality, and energy efficiency. Investing in superior sheathing reduces heating and cooling costs.
Example: When you lay a more expensive waterproofing system in your bathroom, like Schluter, it may cost you on the front end. However, it may save you money in the long run by not having to deal with property damage from a water leak. That extra $3-5k in materials and labor is a pricey addition, but it can save you later on. It would have saved one of our homeowners a $65k water damage claim we witnessed in 2024!
Hidden Systems
Similar to materials, the systems of your home are incredibly important and many contractors rely on the common practices as their standard for building. The main system of your home that has been greatly improved through building science would be your HVACD system.
“Wait…is that ‘D’ in HVACD a typo?” No, it actually stands for Dehumidification, and it’s missing from most homes in the Piedmont Triad.
Many homes are still being built the way they’ve been built for decades: leaky and with a standard HVAC system.
Why is dehumidification important?
Most HVAC systems don’t properly regulate humidity, leading to mold, mildew, and air quality issues. According to the EPA in their Mold Course, “Indoor relative humidity (RH) should be kept below 60 percent -- ideally between 30%-50% percent, if possible.” We see all the time that high humidity problems in homes are often caused by the way the house was built and improper use or lack of dehumidification systems in the home, which is common in the Piedmont-Triad.
Common Issues Caused by Poor Humidity Control:
Homes are often built with dated framing processes that do not keep outside air from coming into the home without being purified and dehumidified. Vented crawl spaces are one of the biggest culprits, of which create a moisture and critter-filled environment that leaks into the living space. This is also true of your exterior walls that have air gaps doing the very same thing. You may have experienced this in your own home!
As a result, many homes rely on air conditioning to remove humidity. While this works well for those hot summer or cold winter days where your HVAC system is running often, it does not run enough on those 60-70 degree days. Therefore, your house needs something else running to remove that humidity.
A whole-house dehumidifier ensures humidity levels remain stable year-round. While your HVAC isn’t running, your whole house dehumidifier may run consistently throughout the day, removing unwanted humidity from your home. This will lead to less drywall cracks, mold and the effects of it, and a more comfortable home.
Tip: Your bathroom exhaust fan isn’t just for getting rid of THOSE smells – it also helps prevent moisture buildup and mold.
These systems are rarely discussed in project estimates, but they play a crucial role in maintaining a home’s health and comfort. You should be able to trust your contractor with creating the most healthy and comfortable environment for you and your family. A contractor who prioritizes home health systems, like the whole home dehumidifier, ensures your home is built for long-term livability!
Site Prep and Utilities
High quality site prep, clean up, and utilities required for your project are a “hidden cost” that won’t show up on a bid, but will show up in your experience with a contractor. Site Prep & Utilities are overlooked when choosing a contractor. Contractors don’t post photos of the properly-handled remodeling project’s debris! You don’t see them when you walk into the newly finished bathroom, but you certainly feel the effects of them during construction.
Where Site Prep Matters:
Remodels. Quality site prep protects floors, carpets, and prevents furniture damage.
New construction. Organizing materials, using dumpsters, and having a Porta John on-site keeps the job safe and efficient throughout the build.
Safety & Accessibility. A clean, organized site prevents accidents and ensures smooth progress. Without these steps, your home can be damaged during a remodel or someone can get hurt on the jobsite.
The Cost of Skipping Clean-Up:
While cleaning up isn’t the glamorous part of remodeling your bathroom, someone has to do it! You’ve probably seen or heard of the stories of a contractor who doesn’t clean up after themselves. Excessive need for cleanup, or accidental dirtying of other aspects of your home risks increasing final costs.
Our View: Some contractors are able to offer a lower bids because they are not planning to spend a lot of resources on site prep and clean up. However, a quality contractor ensures your home is move-in ready, not a construction zone, avoiding any damage or costs associated with a messy site. We believe this is one of those upfront “hidden costs” that’s worth it.
Final Thoughts: Why These Costs Matter
By understanding these hidden costs, you can make a informed evaluation of your next construction project quote, even if it’s from us! We hope this information helps you choose a contractor who prioritizes quality over cutting corners.
It’s often the hidden construction costs that make a significant difference in your home’s quality, longevity, and overall experience. Hopefully by reading this article, you better understand how a PM and Superintendent can provide a really good or really bad experience for you as the customer. You are now also aware of the importance and effects of using better materials and systems for the construction of your home.
If you or someone you know is looking for a contractor that can be trusted to take care of you as the homeowner and provide a quality experience with quality work, we would love to talk with you about your project. You can simply call us at 336-362-7469 or schedule a Ballpark Estimate Phone Call on our online calendar HERE!